To increase the Chinese grain self-sufficiency rate and insure food security, from 2004 three agricultural systems were enacted: the minimum grain purchase pay system, the agricultural tax exemption system, and the food direct subsidy system. As a result, since 2004, the grain self-sufficiency rate has remained over 95 percent. On the other side, the plant oil self sufficiency rate has stayed around 40 percent, as the production of soybeans, the main material of plant oil, has remained the same. In this sense, China has given priority to a stable grain supply. On the other hand, the planted area of peanuts, another source material for plant oil, has been sharply increased from 2008 to 2010, especially in Liaoning Province. On this basis, this article uses the case of the main producing area, the Fumeng Prefecture in Liaoning Province, to clarify the relationship between the expansions of the peanut planted area and the governmental duties.
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